Lawyers for Wilpon, Saul Katz, and their partners in Sterling Equities say the trustee is misapplying the law to claim principal that the owners invested with Madoff. They also dispute Picard’s claims that they ignored red flags pointing to the fraud.

“And their goal, I’m sure, is to negotiate a smaller number, but they’re going to have to eliminate that $700 million number because if that number stays, then I think you can say absolutely, they’re going to have to sell the team,” he told WCBS 880 reporter Marla Diamond. “I think that would put the Wilpons in serious jeopardy of certainly having to consider to move along further with David Einhorn in terms of an actual sale of the club.”

Settlement talks have been going on for a year, and recently the two sides have been meeting with the court appointed mediator and former New York governor Mario Cuomo.

Marla DiamondI began my career at WCBS in the fall of 1997 as the station's New Jersey Correspondent...and I learned one thing. It's a big state! I grew up never...More fromMarla Diamond